Financial Contrast: InMode (NASDAQ:INMD) & STAAR Surgical (NASDAQ:STAA)

InMode (NASDAQ:INMD) and STAAR Surgical (NASDAQ:STAA) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Institutional & Insider Ownership

68.0% of InMode shares are held by institutional investors. Comparatively, 96.7% of STAAR Surgical shares are held by institutional investors. 6.9% of InMode shares are held by company insiders. Comparatively, 39.9% of STAAR Surgical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

InMode has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, STAAR Surgical has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for InMode and STAAR Surgical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InMode	1	6	1	0	2.00
STAAR Surgical	3	8	2	0	1.92

InMode presently has a consensus price target of $16.00, suggesting a potential upside of 8.04%. STAAR Surgical has a consensus price target of $28.40, suggesting a potential upside of 17.55%. Given STAAR Surgical’s higher probable upside, analysts plainly believe STAAR Surgical is more favorable than InMode.

Profitability

This table compares InMode and STAAR Surgical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InMode	20.69%	11.99%	10.60%
STAAR Surgical	1.13%	9.05%	6.99%

Earnings & Valuation

This table compares InMode and STAAR Surgical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InMode	$370.49 million	2.30	$93.83 million	$1.23	12.04
STAAR Surgical	$239.44 million	5.06	-$80.45 million	$0.07	345.14

InMode has higher revenue and earnings than STAAR Surgical. InMode is trading at a lower price-to-earnings ratio than STAAR Surgical, indicating that it is currently the more affordable of the two stocks.

Summary

InMode beats STAAR Surgical on 8 of the 14 factors compared between the two stocks.

About InMode

InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.

About STAAR Surgical

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, markets, and sells implantable lenses for the eye, and companion delivery systems to deliver the lenses into the eye. The company provides implantable Collamer lens product family (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia. It markets its products to health care providers, including ophthalmic surgeons, vision and surgical centers, hospitals, government facilities, and distributors, as well as products are primarily used by ophthalmologists. The company sells its products directly through its sales representatives in the United States, Japan, Germany, Spain, Canada, the United Kingdom, and Singapore, as well as through own representatives and independent distributors in China, Korea, India, France, Benelux, Italy, and internationally. STAAR Surgical Company was incorporated in 1982 and is headquartered in Lake Forest, California.